Fiscal deficit, trade deficit, and financial account deficit: triple deficits hypothesis with the U.S. experience

• Main Author: Tang, T.C.
• Format: Monograph
• Language: English
• Published: Department of Economics, Monash University, Australia 2014
• Subjects: H Social Sciences (General); Statistical data; Methodology; Consumption. Demand; Foreign exchange. International finance.
• Online Access: http://eprints.um.edu.my/17132/1/2014_Tang_Triple_deficits.pdf; http://eprints.um.edu.my/17132/; http://business.monash.edu/economics/research/publications/2014/0614fiscaldeficittang.pdf

By extending the well-known twin deficits hypothesis, this study proposes a new testable hypothesis - “triple deficits hypothesis” from the general equilibrium perspective, which considers the third deficit of capital and financial account of balance of payment. An empirical l framework is conceptua...